Are you ready to opt into a cash discount program but not sure where to begin? Cash discount programs have many benefits for your business, particularly if most of your customers prefer cash or credit card payments. It’s one of the best credit card processing solutions available today for merchants.
Undeniably, there has been a surge in various digital payment methods. Despite this, there is a substantial number of customers who still pay in cash. That is why a lot of businesses opt for cash discount programs than only depending on the credit card and digital payment options. Let us have a quick look at the nuts and bolts of a cash discount program and how merchants can benefit from it?
In a cash discount program, customers receive lower prices of commodities/services they wish to buy if they choose to pay by cash. However, if they want to make a credit card payment, they have to pay a little bit higher price including credit card payment processing fees. Customers that choose to pay by cash, therefore, enjoy discounted prices whereas the merchants end up eliminating their credit card processing fees. The money they save this way is translated into discounts and rewards for customers that pay by cash. Even if you opt for a cash discount program, you may still continue to receive merchant payment online.
While online merchant services for small businesses can help them accept credit card payments and payments through other digital modes of payment, many businesses even today choose to work with cash discount programs due to the many benefits. Businesses that prefer cash discount programs include retail stores, hair salons, restaurants, service professionals, repair shops, and many more.
For starters, it is not easy to bear the credit card processing fees and other merchant payment online options. To reduce their overhead, they have to keep their costs low. The benefits a cash discount program offers these merchants include:
Cash discount programs save the merchants from credit card processing fees and other merchant services fees. Since there is no credit or debit card transaction involved when paying by cash, customers that pay by cash don’t have to pay the credit card processing fees. As a result, the prices of commodities/services go up. This program provides businesses with a respite from unnecessary fees associated with card processing and use the saved funds for business expansion, offering discounted rates to customers, and multiply their earnings & savings.
By allowing your customers to pay by cash (through cash discount program), online (through merchant payment online) or by credit/debit cards, you are providing them with more options to buy from you. With a cash discount program, however, they can save more as they get discounted prices from you for the same product/service that they will buy at a slightly higher price if they choose to pay by credit cards. So, you can attract buyers who look for great bargains!
Merchant services such as cash discount programs simplify the process of payment for the customers, vendors, sellers, and merchants. In other words, by allowing your customers to pay by cash, you can drastically reduce your risk of chargebacks, data breaches, pricing disputes, fraud, etc.
While modern technology has introduced so many payments, convenient payment methods, including contactless, digital, mobile payment, and credit card payment, the old-fashioned, traditional cash payment option still has its own set of benefits to offer. A great advantage of the cash discount program is that you get paid instantly when a customer pays by cash. There is no waiting time for the transaction to complete as it is in the case of other payment options.
Now that you know the benefits that cash discount programs can offer, all you need to do is connect with a trusted payment processor and provider of merchant services for small businesses such as Payment USA to get started.